资本市场与公司财务课件-

Chapter1PreliminaryconceptsIntroductionIsthissubjectrelevanttome?ThiscoursewillunderpinanyfinancecourseyoudointhefutureIsthecoursedifficulttopass?Withsufficientstudy,noWherecanIgethelp?Yourlectureroranotherlecturer(consultation)orPASSprogram(seecourseoutline)Willthiscoursemakemeamillionaire?Yes…Ipersonallyguaranteeit!* *Readingthisstatementvoidsallguaranteesmade.OverviewInthislecturewewilldiscussThecorporateobjectiveandcorporatefinancialdecisionsThenatureoffinancialassetsandcapitalmarketsTheflowoffundsthroughtheeconomyThevaluationoffinancialassetsTherateofreturnonsecuritiesTheinformationcontainedinthe“markets”sectionoffinancialnewspapersThecorporateobjectiveThecorporateobjectivecanbestatedintwodifferent,butequivalent,ways:“Maximisethevalueofcompanyequity”OR“Maximiseshareholderwealth”Thismeansusingscarceresources(capitalandlabour)inthemostefficientmannerpossibleCorporatefinancialdecisionsThe3keydecisionsfacedbyfinancialmanagersare:TheinvestmentdecisionThefinancingdecisionThedividenddecisionCorporatefinancialdecisions(cont)TheinvestmentdecisionThewayinwhichfundsthathavebeenraisedareusedinproductiveactivitiesTheobjectiveistogenerateareturntoinvestorsThisisdealtwithunderthetopicof“capitalbudgeting”or“projectevaluation”(Chapter4)ThefinancingdecisionThemixoffundingobtainedfromcapitalmarketsTheproportionalholdingsofequityanddebtThisisaddressedviaanalysisof‘capitalstructure’(Chapter11)Corporatefinancialdecisions(cont)ThedividenddecisionRelatestotheforminwhichreturnsarepassedontoequityholdersThisisdealtwithunder‘dividendpolicy’(Chapter10)Corporatefinancialdecisions(cont)FinancialassetsRealassetsFinancialassets‘Assets’canbeclassifiedasAssetsthatcanbeput

toproductiveuseto

generateareturne.g.machineryandequipmentAssetsthatrepresentaclaimtoaseriesofcashflowsagainstaneconomicunite.g.abankaccountExamplesoffinancialassetsSharesAclaimagainstacompanyCashflows=dividendsandsalepriceBondsAclaimagainstthebondissuerCashflows=interestandprincipalBankaccountsAclaimagainstabankCashflows=interestandprincipalCapitalmarketsCapitalmarketsareamediumfortheissueandexchangeoffinancialassetsExamplesinclude:The“bigfour”banksTheAustralianStockExchange(ASX)TheAustraliangovernmentbondmarketAcapitalmarketcanbeseenasameansofexchangingcurrentandfutureconsumptionTheflowoffundsTheflowoffundsbeginswithinvestors,whoinvestfundsincapitalmarketsInvestorsCapital

marketConsumptioninvestmentdecisionFIGURE1.1Theflowoffunds(cont)CorporationsacquirefundsfromcapitalmarketsbysellingfinancialassetsCorporationsConsumptioninvestmentdecisionFinancialassetvaluationCapitalstructuredecisionInvestorsCapitalmarketFIGURE1.1CorporationsthenusethesefundstoacquirerealassetstogeneratecashflowsRealassetsConsumptioninvestmentdecisionFinancialassetvaluationCapitalstructuredecisionInvestmentdecisionInvestorsCapitalmarketCorporationsTheflowoffunds(cont)FIGURE1.1ThesecashflowscanthenberepaidtoinvestorsorretainedasasourceoffinanceConsumptioninvestmentdecisionFinancialassetvaluationCapitalstructuredecisionInvestmentdecisionDividenddecisionInvestorsCapitalmarketCorporationsRealassetsTheflowoffunds(cont)FIGURE1.1MeasuringwealthofcorporateownersAcompanyshouldmakedecisionsthatincreasethewealthofitsownersThisissynonymouswithincreasingthevalueofthefirmOwnerwealthismeasuredby‘marketcapitalisation’ofsecurities,ForsharesthisisthetotalmarketvalueofallofthesharesofacompanyonissueExampleMajorNewscorpsecuritiestradedontheASX7January2008

SECURITY(Commonstock)ASXSTOCKCODENO.ISSUED(m)LASTSALEPRICEMARKETCAP.

($b)ClassBNWS98722.7322..4ClassANWSLV214222.1847.5TOTAL69.9Measuringwealthofcorporateowners(cont)TABLE1.1Incentivesandmechanismsdesignedtoencouragecompanydecisionmakerstomaximisethewealthofowners:Companyregulators(e.g.ASIC)Directors’remunerationpackages

(e.g.bonusestiedtocompanyearnings)OwnershipofsharesbydirectorsThetakeovermarketShareholdervotingpowerMeasuringwealthofcorporateowners(cont)OneofthemostimportantconceptsinfinanceisthevalueofassetsThevalueofanassettodayisNOTthesameasitsvalueinthefuture,becauseofthetimevalueofmoneyThetimevalueofmoneyisderivedfromthefactthatinterestcanbeearnedonanalternativeinvestmentopportunityThisinterestrateisreferredtoastheopportunitycostofbuyingtheassetortheopportunitycostofcapitalAssetvaluationExample:Howmuchwouldyoupayforthisasset?NABiscurrentlyofferingarateofreturnof5%01year$105value?Assetvaluation(cont)FIGURE1.2Youwouldn’tpay$105,becauseyoucouldinvest$105inabankaccountandthiswouldgrowto$110.25($105x1.05)Youwouldbehappytopay$97,becausethealternativeinvestment(thebankaccount)onlyyields$101.85($97x1.05)Themaximumthatyouwouldpayis$100,becauseyourwealthinoneyearfrompurchasingtheassetisthesameaswhatyouacquirefromthealternativeinvestmentAssetvaluation(cont)YouhavepricedtheassetinsuchawaythatyougeneratearateofreturnfromtheassetequaltoyouropportunitycostofcapitalThepricethatyouarewillingtopayissometimescalledtheintrinsicvalueTheintrinsicvalueisdeterminedby: (i) Thefuturecashflowexpectedfromtheasset,and

(ii) TheopportunitycostofcapitalAssetvaluation(cont)Theintrinsicvalueandthefuturecashflowarerelatedbythefollowingexpression:

where: FV = FutureValueorfuturecashflow PV = PresentValueorintrinsicvalue r = Interestrateoropportunitycost(1.1)Assetvaluation(cont)RearrangingEquation1.1givesageneralexpressionforthevalueofasinglecashflowreceivedinoneperiod’stime:

Thevalueofanassetisthefuturecashflowdividedby,ordiscountedby,(1

+

r)rcanbereferredtoasthediscountrate,thehurdlerateortherequiredrateofreturnAssetvaluation(cont)(1.2)Fisher’sSeparationTheoremTheconceptswehavelookedatareformallylinkedinFisher’sSeparationTheorem,whichprovidesasingledecisionruleforafirm’sinvestmentdecisionsThetheoremisbasedonthreeconcepts:Investorpreferences(representedbyindifferencecurves)Capitalmarkets,whereindividualscanborrowandlendatthemarketinterestrateProductionpossibilitiesavailabletoafirmFisherSeparationTheorem(cont)Anindifferencecurveshowsallcombinationsofconsumptionnowandlaterthatgiveequallevelsofsatisfaction–theinvestorisindifferentbetweenthem$later$nowIndifferencecurvesFisherSeparationTheorem(cont)Thehighertheindifferencecurve,themoreconsumptionbothnowandlater,andthereforethegreaterthelevelofsatisfaction,orutility$later$nowIncreasingutilityFisher’sSeparationTheorem(cont)Acapitalmarketallowsindividualstotradeoffbetweenconsumptionandconsumptionlaterbyborrowingandlending$now$laterMarketopportunitylineSlopedeterminebymarketrateofreturnFisher’sSeparationTheorem(cont)TherangeofinvestmentopportunitiesavailabletothefirmcanberepresentedbytheProductionPossibilitiesFrontier(PPF)ProductionpossibilitiesfrontierFirmtransformscurrenttofutureconsumptionSlopeisreturntoinvestment$later$nowFisher’sSeparationTheorem(cont)Firmshaveinvestmentopportunitiesthat,initially,givereturnshigherthanthoseavailabletotheindividualinvestorinthecapitalmarketFirmshouldinvestuntilreturnoninvestmentequalsthecapitalmarketreturn$later$nowFisher’sSeparationTheorem(cont)Shareholderscanthenborroworlendinthecapitalmarkettosatisfytheirindividualconsumptionpreferences$later$nowOptimalconsumptionforshareholderBABFisher’sSeparationTheorem(cont)ThedecisionruleprovidedbyFisher’sTheoremisthatmanagement’sroleistomaximisethepresentvalueofthefirm’sinvestmentsinproductiveassetsThefirmshouldinvestinallprojectsthathaveareturnequaltoorhigherthanthemarketrateofinterestManagementdoesnotneedtotakeintoaccounttheconsumptionpreferencesofthefirm’sownersThusthefirmsdecisionsareseparatefromtheownerspreferences,hencethenameTherateofreturnonanassetcanbedefinedasthegainfromanassetdividedbythecostofacquiringtheasset:(1.3)RateofreturnonsecuritiesAssumethatashareisboughtatthestartofaday,andthensoldatthecloseoftradingTherateofreturnonthesharecanbeexpressedas:

`(1.4)Rateofreturnonsecurities(cont)Rateofreturnonsecurities(cont)ExampleOn7January2008NewsCorporationsharesopenedfortradingatapriceof$23.73andclosedthedayatapriceof$22.73.OnthesamedaytheAllOrdsindexopenedat6385.4pointsandclosedat6240.4points.WhatistherateofreturnonNewsCorporationandtherateofreturnonAllOrdsindex?

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RateofReturnonNewCorp=[22.73-23.23]=-0.02152(-2.15%) 22.23RateofreturnonAllOrds=[6240.4–6385.4]=-0.0227(-2.27%)

6385.4TheperformanceofdifferentsharesonanydaycanbeascertainedbyexaminingthemarketssectionoftheAustralianFinancialReviewThemarketssectionlistsallsharesthataretradedontheASX,togetherwithahostofmarketandotherinformationforeachshare‘Markets’sectionoffinancialpressExample:ExtractfromtheAustralianFinancialReviewmarketssection(8January2008)52-WEEKHIGHLOWDAY’SHIGHLOWASXCODECOMPANYNAME1.591.091.4251.385MYOMYOBLtd32.6022.7223.1022.72NWSNewsCorpbvotingThefirsttwocolumnsshowthehighestandlowestpricesforeachstockoverthepastyear–anindicationofthepricevolatilityofeachshare(CONT)‘Markets’sectionoffinancialpressExtractfromtheAustralianFinancialReviewmarketssection(8January2008)52-WEEKHIGHLOWDAY’SHIGHLOWASXCODECOMPANYNAME1.591.091.4251.385MYOMYOBLtd32.6022.7223.1022.72NWSNewsCorpbvotingThenexttwocolumnsshowthehighestandlowestpricesforeachstockthepreviousday(CONT)‘Markets’sectionoffinancialpressThemostcriticalinformationisfoundinthecolumnafterthecompanyname–thelastsalepricethepreviousdayExtractfromtheAustralianFinancialReviewmarketssection(8January2008)ASXCODECOMPANYNAMELASTSALE+/-VOL100sQUOTEBUYSELLMYOMYOBLtd1.42510841.411.45NWSNewsCorpbvt22.73-503040522.7322.74(CONT)‘Markets’sectionoffinancialpressThenextcolumnshowsthechange(incents)inthesharepriceoverthecourseoftheday-theopeningpricecanbeascertainedfromthisfigureExtractfromtheAustralianFinancialReviewmarketssection(8January2008)ASXCODECOMPANYNAMELASTSALE+/-VOL100sQUOTEBUYSELLMYOMYOBLtd1.42510841.411.45NWSNewsCorpbvt22.73-503040522.7322.74(CONT)‘Markets’sectionoffinancialpressThenextcolumnshowsthenumberofsharestraded,indicatingtheliquidityoftheshareExtractfromtheAustralianFinancialReviewmarketssection(8January2008)ASXCODECOMPANYNAMELASTSALE+/-VOL100sQUOTEBUYSELLMYOMYOBLtd1.42510841.411.45NWSNewsCorpbvt22.73-503040522.7322.74(CONT)‘Markets’sectionoffinancialpressThe“buy”quoteisthehighestpricethatabidderwaspreparedtopayfortheshareatthecloseoftradingExtractfromtheAustralianFinancialReviewmarketssection(8January2008)ASXCODECOMPANYNAMELASTSALE+/-VOL100